Estate planning beats trip to dentist

February 06, 2009|By Dennis Foster, Special to the Farm Forum

As the recent holiday season is still freshly in our minds; you most likely had the good fortune to spend some considerable time with family members. This is a great time of year to remind us exactly why we hold these relationships so dear, particularly children and grandchildren. After all, the succeeding generations are an extension of ourselves and the values in which we have tried so hard to impart to them. The focus of this column is estate planning, and unfortunately, many folks lose sight of what exactly this is and the true importance of getting beyond the talking stage and actually completing a working plan. The stereotypical view is that of an experience resembling a painful dental procedure made worse by the fact it involves confusing and often complex legal and financial tools being administered by folks who really don't understand, and sometimes don't care about our unique situations. While documents and financial arrangements are certainly needed, they are merely the framework that supports our wishes and provide the means to accomplishing our goals. The heart of the matter Ð literally Ð is coming to terms with what we would like to happen when we are gone, and, most importantly, doing something about it. All the legal and financial tools available cannot solve a single problem or concern if all of your thoughts are not completely expressed and fully comprehended. This is why it is imperative that you choose advisors that possess the most important skill of all: the ability to truly listen. Only then can they begin to administer the full range of all acceptable tools, both legal and financial. Be sure to work with someone who has a firm grasp of each, as one without the other often proves futile, and in the end, quite useless. If an advisor comes into a meeting with what appears to be strictly their own agenda, then yours is obviously not being met. There is only room for one outcome, and that is making sure all of your needs always come first and are ultimately met to your satisfaction. Once all of your family's concerns are voiced and understood, a truly excellent advisor will then act as helmsman of the ship to guarantee this is done and will help to point out and steer around any obstacles in your path. Done properly, you can have an impact that will last for generations to come by putting forth just a little thought and effort today. I'm sure you exchanged many fine gifts over Christmas. As appreciated as these are, the most enduring gift you can pass to the next generation is of yourself. Meaning, the fact that you had the foresight to plan ahead and ensure that there will be harmony in your family, not only for the next generation, but for those to come as well. Our main goal should be to not only preserve the integrity of the farm business, but to guarantee that all family members are thought of and that no one is forgotten. This is not to say that each member should receive equal inheritances. This is often proves to be very difficult in light of participation levels in the farming operation. A phrase I like to use is “Equitable not Equal” in determining what property should go where. These are deeply personal family decisions, and this is where the experience of a well seasoned advisor can be invaluable in providing possible solutions that will meet with the entire family's approval. Do yourself and your family a favor and seek out such an advisor. Future generations will be glad you did. Dennis Foster can be reached at The Dornbush Agency, Inc., 605-225-3774 or 1-800-207-0747. His column is published the first Friday of each month.